Interest rates fluctuate with the economy. In the 1980s, the highest CD interest rate was over 16%.
Question:
a. If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?
b. If $1,000 is invested at 5% interest, compounded continuously, for five years, what is the ending balance?
c. What is the difference between the two ending balances?
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Related Book For
Financial Algebra advanced algebra with financial applications
ISBN: 978-0538449670
1st edition
Authors: Robert K. Gerver
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